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Tax Time and $7500 for First Time Buyers

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    #1

    Tax Time and $7500 for First Time Buyers

    Hello All,
    When my Ch 13 was confirmed 24 months ago I asked about tax refunds and my lawyer said that the trustee was involved if the refund was over $2,000. That year I had a $400 refund. Last year I owed $900 (didn't think about changing my withholding since my daughter was no longer a dependent), but I managed to scrape together the money.
    This year I would owe about $100 but last September I was able to purchase a house (The Trustee gave her okay) which makes me eligible for the Federal First Time Home Owner $7,500. This is not a true refund but an interest free loan that will be repaid $500/year for 12 years from annual taxes. I was planning on putting it in a home repair/maintenance account for HVAC repairs, etc.
    I'm not sure if I should contact my lawyer about this or just let life play out. I try to really fly under the Trustee's radar and am reluctant to call attention to my plan.
    Any advice or comments would be appreciated. Thanks.
    Tags: 24 down-36 to go!
    #2
    Originally posted by fslady View Post
    I'm not sure if I should contact my lawyer about this or just let life play out. I try to really fly under the Trustee's radar and am reluctant to call attention to my plan.
    Yes, you should contact your lawyer about this situation. Staying below the radar is one thing. Making an assumption about $7500 during an active Ch 13 is another. Get solid legal advice from your lawyer, then follow it.

    If the $7500 doesn't affect your Ch 13, then great - no worries. But if it will, then your lawyer can be ready to keep the impact to a minimum.
    I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.

    06/01/06 - Filed Ch 13
    06/28/06 - 341 Meeting
    07/18/06 - Confirmation Hearing - not confirmed, 3 objections
    10/05/06 - Hearing to resolve 2 trustee objections
    01/24/07 - Judge dismisses mortgage company objection
    09/27/07 - Confirmed at last!
    06/10/11 - Trustee confirms all payments made
    08/10/11 - DISCHARGED !
    10/02/11 - CASE CLOSED
    Countdown: 60 months paid, 0 months to go

    Comment

      #3
      lrprn is dead on. Never hide anything financial like this from your attorney during a Chapter 13. While I understand you don't want to rock the boat, you can sink it later on if it needed to be reported and was discovered by the trustee.
      _________________________________________
      Filed 5 Year Chapter 13: April 2002
      Early Buy-Out: April 2006
      Discharge: August 2006
      "A credit card is a snake in your pocket"

      Comment

        #4
        Thanks for the responses

        I thought that I should contact the lawyer esp. since the $7500 is a "loan" from the Feds. I don't know if the $7500 can be refused but I'd rather do that than give it to the Trustee. I am going to emphasize to the lawyer that I do need a fund for the HVAC with summer coming up. And I'm in one of the areas that has just been hit by the horrible ice storms - $500 for trimming the tree off the roof.
        Thanks again for the advice even if it's not what I wanted to hear. I'll let you know what the lawyer says.

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